Canada Consulting Fees For Re-Development Site

[pjdel01]

Hello,

I have a new bookkeeping client that has purchased a residential property that he is re-developing into a hotel. For now, the income and expenses are straight forward aside from the consulting fees that he is incurring. They are substantial. I'm wondering if these expenses should be posted to an asset account and capitalized vs a normal expense account. My research tells me preliminary consulting fees can be expensed but once the project becomes probable, they should be capitalized. Any advice on accounting for developers would be great!

Thanks,

Paul